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Governor, Canadian Premiers Preparing for Gas Pipeline Construction


November 01, 2005

Vancouver, British Columbia - Alaska Governor Frank H. Murkowski met with the premiers of three Canadian provinces Monday who all committed to support good faith negotiations between their governments, North Slope oil producers and Canadian pipeline companies to ensure the most expeditious development of the project.

"The best way to avoid delay and litigation in Canada is to resolve regulatory, aboriginal and operational issues with Canadian pipeline operators," Murkowski said. "Today's meeting is part of our effort to ensure that there is a coordinated expeditious process for the project in Canada."

Murkowski met with Alberta Premier Ralph Klein, British Columbia Premier Gordon Campbell and Yukon Premier Dennis Fentie while in Vancouver to discuss matters related to the Canadian portion of an Alaska Highway gas pipeline project.

The focus of the governor's discussions regarding the gas pipeline was on facilitating development of a line through Canada and on engaging the producers in that effort. Also on the agenda were discussions about the progress of a potential rail link from Alaska to Canada through the Yukon Territory.

The meeting is part of an effort to ensure that there is a coordinated, expeditious process for the project in Canada. In anticipation of an agreement in Alaska, the governor has turned his attention to advancing the Canadian portion of the pipeline.

ConocoPhillips agreed to a base fiscal contract terms with the state on a natural gas pipeline contract that meets the governor's six pipeline principles. The six principles are:

1) Alaskans deserve a fair share of revenues from a gas pipeline project.

  • Gasline dollars will support quality education, healthy and safe communities and protect our most vulnerable seniors and children
  • Twenty-five percent of gas pipeline royalties will grow the Permanent Fund

2) Alaskans need the opportunity to access the gas.

  • New energy is critical to the Railbelt and Southcentral
  • Affordable energy is vital to growing a healthy economy throughout Alaska

3) Future explorers must have access to the gas pipeline.

  • Exploration and development opportunities for new market entrants are critical for Alaska's future

4) The gas pipeline must be expandable.

  • New discoveries must get to market so Alaska realizes maximum benefit from the gas pipeline

5) The state should share in the wealth by owning a share of the gas pipeline.

  • Gasline ownership will provide a stable, steady revenue stream
  • Ownership will give the state a "seat at the table" to protect Alaska's interests

6) Alaskans deserve Alaska Gasline jobs.

  • At least 6,500 new jobs will be created in Alaska
  • Training for Alaskans has begun for these jobs and $7 million in federal job training funds is just the beginning

The state is working with BP and ExxonMobil to finalize an agreement that could then be put before the public for consideration.

In addition to regulatory concerns, the governor also talked to Canadian officials about the potential of extending a rail link from Canada to Alaska, extending an energy intertie from Southeast Alaska to British Columbia, and their collective concerns over requiring Americans to carry passports to enter Canada.

Also while in Vancouver, the Governor spoke to a gathering of the Resource Expo 2005 about the role of Alaska in North America's energy supply picture. In addition, he will speak to the NorthWest CruiseShip Association in Seattle.

After his trip, the Governor will travel to Washington, D.C. During his trip, he will meet with Interior Secretary Gale Norton to discuss a variety of Alaska issues, including the King Cove-Cold Bay road, increased cruise ship entries into Glacier Bay, north Denali National Park access, the fate of the Chirikof Island cattle and several other issues.

On the Web:

The Alaska Pipeline

Source of News:

Office of the Governor


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Ketchikan, Alaska